Intel Capital invests in VMware

Intel Corp, through its global investment arm, Intel Capital has agreed to become an investor in virtualization software company VMware.

No surprise, as the majority of systems using VMware software run on Intel CPUs and Chipzilla wants to strengthen the ties between the two companies.

In addition VMware and Intel have entered into a routine and customary collaboration partnering agreement, and want to improve cooperation in various joint development, marketing and industry initiatives.

Intel will invest a total of $218.5 million, this should be enough to get them ownership on 2.5% of VMware's total outstanding stock.

VMware also used the occasion to announce the availability of its VMware Lab Manager 2.5, the latest version of the industry's leading virtual lab automation system.